The Ministry of Manpower (MOM) will prosecute Tipper Corporation for failing to pay the salaries of its workers on time.
Similar action will be considered for Gates Offshore and Goldrich Venture once investigation is completed.
MOM will also be prosecuting Tipper Corporation and its two sub-contractors, S1 Engineering and UPNB, for their involvement in the illegal deployment of foreign workers hired by Tipper to other companies. This is an offence under the Employment of Foreign Manpower Act.
The companies under investigation have been barred from hiring new foreign workers.
Salary paid
The salary owed to 276 foreign workers from Gates Offshore and Goldrich Venture was fully paid on Jan 9.
Similarly, 421 foreign workers under Tipper Corporation have accepted an offer to settle their salary arrears through instalments. Some 160 of them received their first instalments on Jan 9.
The ministry has also informed the workers that they can choose to return home or be placed on a list of foreign workers available to be hired by other employers.
Errant employers face fine or jail or both
The ministry said it will not hesitate to take action under the Employment Act (EA) or the Employment of Foreign Manpower Act (EFMA) against employers who fail to pay salaries on time, or fail to upkeep and maintain the foreign workers they have brought in.
As failure to pay salaries on time is an offence under the Employment of Foreign Manpower Act, employers who fail to pay their employees can be fined up to $5,000 or jailed for up to six months or subject to both penalties.
If necessary, MOM will pursue prosecution action against the companies, their owners and the directors, even if the salaries are eventually paid up.
Employers who fail to upkeep and maintain their foreign workers, including providing acceptable housing and appropriate medical care, will be prosecuted under the Employment of Foreign Manpower Act.
Errant employers can be charged and fined up to a maximum of $5,000 with respect to inadequate upkeep and maintenance of each foreign worker.
MOM advises workers
Gates Offshore P L workers receiving their salary payment on Jan 9 at 468 Tagore Lane.
The ministry advises workers to report any instances of salary arrears early, before the arrears accumulate. This will help facilitate quicker resolution of the problem.
MOM will first explore if the parties can arrive at a mutually acceptable settlement. According to a ministry statement, this has proven to be an effective approach in most cases, resulting in a high rate of recovery of arrears.
"However, the process cannot be immediate and will take some time. This is because the employer may be facing a cash flow problem, which is heightened during an economic downturn.
"Time will be therefore be needed for an orderly resolution of the dispute," said the ministry.
At the same time, the ministry also advices workers not to take matters into their own hand, but to work within the framework under Singapore's labour laws.
"Workers are assured that MOM is committed to seek a fair resolution to their dispute," said the ministry in its media statement.
